^{28.Suppose that during the year the exchange rate changes from Euro2.7/1 to Euro2.65/1. What are the real costs to a German company of borrowing pounds? And the yield is 16%.}

^{a. 14%}

^{b. 14.85%}

^{c. 13.85%}

^{d. 18%}

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^{25.The Treasury is selling 91-day T-bills with a face value of $10,000 for $8,800. If the investor holds them until maturity, calculate the yield.}

^{a. 5.46%}

^{b. 5.47%}

^{c. 7.56%}

^{d. 4.57%}